Friday, May 11, 2012

China’s made news the last couple years pumping big money into North
America’s resurgent oil and gas business. And the man with the credit
card says the country’s state-owned oil companies aren’t done shopping.

Sinopec is diversifying from its traditional refining role under the leadership of Chairman Fu Chengyu. Mr. Fu pioneered China’s push into North America’s oil patch,
negotiating a pair of joint ventures with U.S. natural gas giant
Chesapeake Energy in 2010 when he was still the head of another Chinese
state enterprise, Cnooc. Those deals, which were worth nearly $2.5
billion combined and gave Cnooc a minority interest in shale fields in
Texas, Wyoming and Colorado.

Under Mr. Fu, Sinopec in January struck a similar deal with
Chesapeake’s cross-town rival Devon Energy that gave it a stake in oil
fields in Ohio, Michigan and several other states in exchange for $2.5
billion.
Both Devon and Chesapeake are marketing similar deals, though Cheaspeake’s divestiture plans maybe changing....MORE